Altius Minerals : 2023 Sustainability Report

2023 Sustainability Report

The Future

We Believe In

TSX: ALS | OTCQX: ATUSF

Introduction	Our Business	Governance	Environment	Social	Appendix

About Altius Minerals

Founded in 1997, Altius Minerals ("Altius" or the "Company") is a mining royalty and development company headquartered in St. John's, Canada.

Image courtesy of Altius Minerals

Altius Sustainability Report 2023

The Corporation manages its business under three operating segments, consisting of (i) the acquisition and management of producing and development stage royalty and streaming interests ("Mineral Royalties"), (ii) the acquisition and early-stage exploration of mineral resource properties with a goal of vending the properties to third parties in exchange for early stage royalties and minority equity or project interests ("Project Generation") and (iii) its majority interest holding in publicly traded Altius Renewable Royalties Corp. (TSX: ARR) ("ARR"), which is focused

on the acquisition and management of renewable energy investments and royalties ("Renewable Royalties").

We are not producers or refiners of materials ourselves but our business is providing financing to operators in exchange for royalties or streams that generate revenue. We have interest in 12 operating mines located in Canada (10) and Brazil (2) that produce copper, nickel, cobalt, lithium, potash, iron ore and thermal (electrical) coal.

Canada

10 royalties on operating mines located in Canada

Brazil

2 royalties on operating mines located in Brazil

We also hold royalty interests in 2 construction stage lithium mines. The Corporation further holds a diversified portfolio of pre-production stage royalties and junior equity positions that mainly originate through mineral exploration initiatives within the Project Generation business.

The Corporation holds a 58% interest in ARR, which through a jointly controlled entity, Great Bay Renewables LLC ("GBR"), holds a portfolio of royalties related to wind and solar renewable energy generation projects located primarily in the United States that includes 10 operating assets and several additional development stage projects. Certain funds managed by affiliates of Apollo Global Management, Inc. (the "Apollo Funds") represent the other party to the joint venture.

Altius has 47,227,903 common shares issued and outstanding (as of the date of this report) that are listed on Canada's Toronto Stock Exchange (TSX). It is included in each of the S&P/TSX Small Cap, the S&P/TSX Global Mining, and the S&P/TSX Canadian Dividend Aristocrats indices.

Introduction | 1

Introduction	Our Business	Governance	Environment	Social	Appendix

Report Overview

Our 2023 Sustainability Report (the "Report") represents the Company's annual disclosure of our environmental, social, and governance ("ESG") performance.

The Report has been prepared in alignment with the Sustainability Accounting Standards Board (SASB) Asset Management and Custody Activities Sustainability Accounting Standard. The Report has also been prepared with reference to the Global Reporting Initiative (GRI) Standards. Energy and climate-related disclosures have been prepared in alignment with the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD).

This is our fourth annual
sustainability report. Previous reports
can be found in our ESG Portal on our
public website at altiusminerals.com	Image courtesy of Altius Minerals

Altius Sustainability Report 2023

The Report covers the ESG performance of Altius Minerals Corporation, including the Company's royalty and streaming business and project generation segment. Information and data are presented

for the 2022 and 2021 calendar years. Initiatives that have been advanced in 2023 are also disclosed where relevant.

The Report does not cover the ESG performance of Altius Renewable Royalties ("ARR") in which the Company owns a 58% stake. The ESG performance of ARR has been disclosed in a standalone report published in Q3 2023 and available at arr.energy.

Restatements and Currency

Restatements of information and data are disclosed in the report where applicable. All monetary figures referenced in the Report are in Canadian dollars (unless otherwise specified). Some values and percentages may not add to the total figure or 100% due to rounding.

Cautionary Notes

Please refer to page 67 for full cautionary notes related to this Report, including notes on forward-looking statements and information within the meaning of Canadian securities law.

Introduction | 2

Introduction

Contents

Our Business

Governance

Environment

Social

Appendix

Message from the Chair of the Governance & Sustainability Committee

Message from the Chief Executive Officer

Highlights

Materiality Framework

Reporting Standards Climate change

Environmental, Health, and Safety Practices Cybersecurity

Expected Trends 2023+

Goals and Targets

4	Our Business
	Our Business Model Overview
	Our Business Strategy
5	Mining Investment Royalty Portfolio
Growing a Sustainable Future
	Electrification Metals
6	Cleaner Steelmaking
ESG Due Diligence
7	Our Business and Values in Action
Responsible Governance
8
ESG Governance
8
Board Overview
9
Executive Compensation
9
Policies
9
Diversity and Inclusion
10
Business Ethics and Transparency

Risk Management

Cybersecurity

11 Environmental Management

1. Environmental Management
2. Climate Change
3. Climate Strategy Oversight and Impacts
4. Carbon Footprint and Strategy
5. Risk Management
6. Metrics and Targets

1. Investing in De-Carbonization
2. Purchased Voluntary Carbon Credits

21	Tailing Management
Water and Non-GHG Air Emissions
23	Our Social Impact
24

1. Labour Relations
2. Health and Safety

1. Health and Safety Program
2. Employee Health and Well-Being
3. Human Rights

34

34	Appendixes
36	Appendix 1 - Operations ESG Disclosure
37	Appendix 2 - ESG Performance Data Tables
38	Appendix 3- SASB and GRI Standards
39	Indexes
40	Cautionary Notes
41
43	Corporate Directory
44
45
45
45
47
47
48	Cover image: From left to right, geologists and local community
49	(Nain, Labrador) field work representatives Suzanne Butler, Harry
50	Dicker, Roderick Smith and Jack Morton
* Images above courtesy of Altius Minerals

50

51

54

58

67

67

Altius Sustainability Report 2023

Introduction | 3

Introduction	Our Business	Governance	Environment	Social	Appendix

Message from the Chair of the Governance & Sustainability Committee

On behalf of the Altius Minerals Board of Directors, I am pleased to introduce our 2023 Sustainability Report. The report represents our primary annual disclosure of environmental, social, and governance ("ESG") information that is most important to our investors and our stakeholders.

At Altius, we recognize that robust ESG management requires a firm commitment from all levels of the organization, from the Board of Directors and the senior management team through to our employees and business partners.

At the Board level, we have worked diligently throughout the year to embed ESG into our governance practices and oversight responsibilities, thinking about our unique position as royalty investors in operating companies. We completed a review of our core corporate policies during the year, and we continued to implement our ESG Investment Policy

to ensure that ESG considerations are continually embedded into our overall due diligence and risk management processes. We adopted an annual "Say- on-Pay" Policy and received over 98% support in each of the last two years at our Annual General and Annual and Special Meetings of shareholders. We will continue to provide our shareholders the opportunity to cast an advisory vote on our approach to executive compensation on an annual basis.

We have disclosed our Scope 3 greenhouse gas emissions, including attributable emissions from our investments over the last two years (Scope 3, Category 15), namely our operating royalty assets. Doing so provides a more complete profile of our Scope 3 emissions, given the unique nature of our business model. Furthermore, accounting for these attributable emissions will enable us to work with our operators as part of the reduction and offsetting process required to meet our combined net-zero emissions targets.

As one of two Altius Minerals nominee directors serving on the Board of ARR, I am pleased to recognize the significant growth that ARR has generated in its royalty pipeline. ARR now has royalties or rights to royalties representing over 15 gigawatts of renewable power capacity. ARR continues to finance new or expanding U.S. renewable power as a meaningful contributor to decarbonization in the U.S.

Solving some of the world's most pressing challenges - from climate change and its associated hard-to- abate industrial processes, including steel-making to global food security

• requires a robust minerals sector to provide critical raw materials.

We are proud to serve on the Board of a royalty company whose focus is metals and commodities that profoundly impact humanity, food, electrification and de- carbonization.

A message from the Chair of Governance

• Sustainability Committee,
  Anna El-Erian

Altius Sustainability Report 2023

Introduction | 4

Introduction	Our Business	Governance	Environment	Social	Appendix

Message from the Chief Executive Officer

In this our fourth annual sustainability report, I am reminded back to our first such report, within which we noted that our business was rooted in the then nascent principles of ESG investing long before the acronym had developed into the common investment lexicon. In other words, Altius has long been shaped to contribute to the world's environmental and social sustainability imperatives in ways that offer shareholders high standards of governance - without compromising their expectations of profitability and growth. We believe that all these things are indeed simultaneously achievable and further believe that Altius remains a leading example of this.

Over the past year, we have seen increasing levels of pressure and backlash emerge against the principles of ESG-focused investment. Much of this vitriol emanates from political leaders who believe that by attempting to slow the pace of capital flows toward sustainable investment and innovation, they can somehow stem societal change and attract votes from those who fear such change. While none of this is surprising, it still sounds like

Altius Sustainability Report 2023

the sad whispers of the dying - just as it has during every other period in human history marked by major transformation and progress. In this case, the majority of society is speaking and recognizing that without sustainability, there can be no progress. The terms are, in fact, synonymous rather than mutually exclusive.

We, therefore, make no apologies for our continuing commitment to improving upon our own direct and indirect impacts and to supporting the advancement of industries that are essential to the world meeting the challenge of sustainability - without compromising the expectations of our shareholders to participate in the economic progress and growth that will result.

Two things are standing out as 2023 highlights for us from a sustainability impacts perspective.

This year, we expect to see the last income from coal. At the same time, our multi-year reinvestment of residual coal

royalties into the royalty-based financing of renewable energy projects is beginning to deliver strong results - both in terms of the quantum of new clean power generation that we have helped enable and with respect to the royalty revenue our shareholders can expect to benefit from for generations to come.

The second is that 2023 has marked our first-ever royalty revenue relating to the production of lithium. This follows a focused investment initiative that also began several years ago, and we expect this part of our portfolio to continue to ramp up meaningfully over the next several years. We take pride in knowing the new lithium mines that we have helped to enable will form a part of the industry supply chain that is essential to the world's transportation de-carbonization

imperative.A message from the Chief Executive Officer, Brian Dalton

As always, we welcome your feedback and suggestions and look forward to continuing to find ways to enhance our sustainability impacts and governance standards while growing the business on behalf of our shareholders. No compromise is required.

Introduction | 5

Introduction	Our Business	Governance	Environment	Social	Appendix

Highlights

of producing royalty and stream assets based in Canada

Insider Ownership at end

5% of 2022 (Management and Named Executive Officers and directors)

Calculated Scope 1, Scope 2 and Scope 3 including Category 15 Portfolio emissions for the purchase of voluntary carbon credit offsets

33%

of Board of

Directors Female

Annual dividend increased by 14% in 2022, representing

14% the 5th increase since dividend payments were initiated in 2014

'AA'

As of 2023, Altius received an MSCI ESG Rating of AA

Exec Comp ESG Weighting increased to 10% in 2023 from 7.5% in 2022

Say-on-Pay

~98% Advisory Vote

held with ~98%

approval

As of September 2023, Altius received an ESG Risk Rating of 33.1 from Morningstar Sustainalytics and was assessed to be at high risk of experiencing material financial impacts from ESG factors.

In no event the rating or risk level shall be construed as investment advice or expert opinion as defined by the applicable legislation.1

Invested C$21M in ARR and US$5M in private company Invert Inc.

Both or which are follow-on investments. ARR and Invert are enablers of de-carbonization through financing renewable energy or facilitating voluntary carbon offset transactions

1 Copyright 2023 Morningstar Sustainalytics. All rights reserved. This publication/ article/ section] contains information developed by Sustainalytics (www.sustainalytics.com). Such information and data are proprietary of Sustainalytics and/or its third-party suppliers (Third Party Data) and are provided for informational purposes only. They do not constitute an endorsement of any product or project, nor an investment advice and are not warranted to be complete, timely, accurate or suitable for a particular purpose. Their use is subject to

conditions available .

Altius Sustainability Report 2023

Introduction | 6

Introduction	Our Business	Governance	Environment	Social	Appendix

Materiality Framework

We conduct ESG materiality assessments to identify, assess, and prioritize the ESG topics that are most relevant to our business and our stakeholders. These topics form the foundation of our ESG reporting and disclosure, including the content found within this report.

The graphic below provides an overview of our ESG materiality assessment process:

	1. Identify	2. Prioritize	3. Validate
	Consider a wide range of sources	Analyze the potential risk and impact to	Validate the results of the assessment
	including global reporting frameworks,	determine the most important issues to	with senior Altius management and the
	investor expectations, securities law	our business and stakeholders.	Governance and Sustainability
	requirements, peer reviews, and ESG		Committee of the Board of Directors.
	ratings agencies requirements.

4. Report		5. Review

Continually review the materiality assessment results to enable continuous improvement in ESG disclosures.

In 2019, we engaged an expert third- party to conduct our initial materiality assessment. The assessment evaluated

14 topics to determine their impact on our business and our stakeholders. The topics were identified from a range of sources, including:

Global ESG reporting and disclosure standards

ESG-related regulations, rules, guidance, and initiatives

Investors' ESG priorities based on engagement and feedback

Internal evaluation and Board oversight of risks

Peer group disclosures of material ESG topics

ESG research and ratings

providers materialityImage courtesy of Altius Minerals

frameworks

Altius Sustainability Report 2023

Introduction | 7

Introduction	Our Business	Governance	Environment	Social	Appendix

As a royalty company, our principles of capital allocation are generally stable, and as a result, our materiality assessment and identified material topics have remained relevant. We conduct periodic reviews of the initial assessment to validate the results and update our list of material topics based on changes to the business and the evolution of ESG reporting and disclosure. Based on the results of our most recent review, we have enhanced our disclosures around the following topics:

Reporting Standards

Last year was our first year of reporting regarding the GRI Standards, a global sustainability reporting framework used by 10,000+ companies worldwide. In 2023, we submitted our first questionnaire response to CDP. CDP is a not-for-profit charity hosting a global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts. We are also expecting 2025 to be the first year of required reporting under ISSB, assuming the Canadian Securities Administrators release their Canadian standards on the current expected timeline by early 2024. The ISSB standards were developed to align with SASB and TCFD, which are frameworks that we currently reference in our disclosure. Proposed changes by the CSA include new disclosure requirements regarding Board and executive diversity, Board renewal, and enhanced disclosure requirements regarding Board nominations.

Climate change

Given the unique nature of our business model as a royalty and streaming company, we have progressed through several iterations of how we disclose and respond to Scope 3 greenhouse gas (GHG) emissions. We now report our attributable emissions from our operating royalty assets in line with the Corporate Accounting and Reporting Standard of the Greenhouse Gas Protocol. In 2021, we reported these emissions on a 100% basis to provide readers with a sense of the businesses we support financially, and in 2022, we attempted to quantify our attributable emissions based on the royalty or streaming interest we hold. This exercise enabled us to estimate our aggregate Scope 3 financed emissions for the year that ended December 31, 2021. In 2023, we have calculated Scope

Altius Sustainability Report 2023

3 Category 15 portfolio emissions (our attributable share) for the year ended December 31, 2022, and are enacting offsetting strategies where operator reduction plans to decarbonize are in progress or being implemented over a longer time horizon. For the Scope 3 Category 15 financed emissions calculations, we engaged Invert Inc. to perform the analysis and calculations. In some instances, data at the individual mine level was not available or was not available within our timeline, resulting in estimates based on prior year data and more current throughput and GHG intensity factors. In 2023, we purchased carbon credits to offset approximately 25,300 tonnes of CO2 equivalent. Details of our GHG emissions and offsets are available on our websitehereand in this report on page 55.

Image courtesy of Altius Minerals

Introduction | 8

Introduction	Our Business	Governance	Environment	Social	Appendix

Environmental, Health, and Safety Practices

As a mining royalty and streaming company, health and safety risks are minimal compared to operating mining companies. However, we have some unique exposures and keep an archive of environment, health and safety ("EHS") compliance and reporting from our

cybersecurity initiatives implemented by the Company in 2022. In 2023, we engaged a third-party analytics firm, BitSight Technologies Inc., to monitor our cybersecurity and the strength of our protections. As part of their services, BitSight performed a peer benchmarking analysis where they measured cybersecurity protections in 19 categories. Of seven royalty companies

Altius (Direct Impacts)

ESG Governance	Diversity and Inclusion
Business Ethics	Cybersecurity

Labour Relations

Altius and Producing Royalty Partners (Direct Impacts)

history as a Project Generator ("PG") conducting early-stage exploration activity and technical due diligence. In this report, we further disclose the EHS management practices we use to manage these risks and to offer leadership and collaboration to our PG partners. Areas of engagement during 2022 included community consultation work as part of work on Inuit lands in Labrador, as well as health and safety documentation that partner Orogen Royalties Inc. adopted for their program in Newfoundland.

Cybersecurity

benchmarked, Altius was tied with one other for the highest ranking overall during the year.

Expected Trends 2023+

In 2022 and currently in 2023, the supply chain is becoming more material, especially in our ownership of ARR. Every stage of the solar supply chain has, in recent years, been dominated by supply coming from China, most of it from the Xinjiang Uyghur Autonomous Region. ARR counterparties Longroad Energy and Apex Clean Energy are signatories to the Solar Industry Forced Labor Prevention

Climate Change Impacts (including energy transition and severe weather events)

Energy and GHG Emissions

Producing Royalty Partners (Indirect Impacts)

Tailings Management

Water Management

Biodiversity

Human Rights

Health and Safety

Mine Closure

Hazardous Materials

Supply Chain

Investors increasingly view cybersecurity as a core business risk, and corporations are increasingly expected to have robust information technology management systems in place. In 2022, we included new disclosures reflecting several key

Altius Sustainability Report 2023

Pledge, which in February 2023 had 340 members actively opposing forced labour in the solar supply chain and advocating for traceability.

Image courtesy of Altius Minerals

Introduction | 9